When Shelf Assortment Reduction of Products Influences Consumers' Perception of Price: The Mediating Role of Social Inference

Abstract

Shelf assortment refers to the short-term unavailability of any item of a retailer's goods. Retailers make major efforts to minimize the number of products that are reduced in the shelf and/or are not available to buy. Drawing on Social Identity Theory and Self-Determination Theory, the authors conducted three experiments manipulating a full assortment (0% of items missing) with an assortment where 40% of the facings is empty—dual condition. We hypothesize a mediated-moderated framework that out-of-stock boosts social inference (mediator, in Study 2), which in turn affects consumers' perception of quality, price, and purchase intention, depending on the levels of locus of causality, ranging from external versus internal (moderator, in Study 3). Experiment 1 uses 98 individuals and food and beverage products (the stimulus with 0% out of stock, vs. stimulus with 40% out of stock.). Experiment 2 has 108 consumers deciding about the quantity using candy (with vs. without stock). Experiment 3 uses 181 consumers in a field store study deciding about cold showers (Saturdays with the presentation of products with 0% missing vs. with 40% missing). All these products are not consumer's primary target at that time, reflecting a non-target product. First, the findings suggest that high levels of shelf assortment of non-target products have effects on consumers' perception of low price and service quality. Second, locus of causality moderates the main effect of shelf assortment. When there is an internal (vs. external) locus of causality, the purchase intention is higher. Third, social inference fully mediates the relationship between it and purchase intention.